After much anticipations, Indiabulls Real Estate and Blackstone are now likely to announce a deal in next few days which will enable the latter to buy 50% stake in the rental business of the former, which approximately stands at $300 million.
Blackstone may also take over a portion of Indiabulls' debt in the rental business. The portion is estimated at $650 million. Indiabulls Real Estate is expected to use the proceeds of the deal to cut the debt. As of now, the firm's net debt stands at $1.5 billion.
The deal will value Indiabulls Real Estate rental business at an enterprise value of $1.3 billion. The firms will have a 50:50 joint venture in the rental business.
First Published: IST